Once a student loan borrower has graduated, transferred, withdrawn, or dropped to below half-time (six hours) enrollment, he or she must complete Exit Counseling. Cleveland State participates in Mapping Your Future's Online Stafford Exit Counseling. Mapping Your Future provides information to loan borrowers about the Master Promissory Note, repayment, repayment options, budgeting, deferments and forbearances, and the consequences of default. Should you have difficulty accessing Mapping Your Future, contact the Financial Aid Office.
The six-month period following graduation, withdrawal, or dropping below half-time enrollment is the grace period. You will receive information from your lender or loan holder on repayment, including your first payment due date. You are responsible for making payment, even if the information from the lender or loan holder does not reach you.
It is important to stay in contact with your lender or loan holder. Keep your lender informed of any change in name, address, phone number, school enrollment or graduation, etc. Make your payments on time. Your lender can provide valuable information on repayment options, including standard repayment, graduated repayment, income-sensitive repayment and extended repayment. Your lender may offer the option of bank draft or automatic withdrawal for your loan payments. Some lenders offer discounts to borrowers who take advantage of this option. You may also receive a discount once you have made so many consecutive payments.
Your lender can also give you information on loan consolidation. Consolidation allows borrowers to consolidate several different loans with different interest rates into one loan. You should weigh the pros and cons of consolidation carefully.
Student loan borrowers should be mindful that loans are an obligation that must be repaid. Always budget your loan payment into your monthly expenses. Take advantage of online loan calculators to help you estimate your monthly payments. Should you have difficulty repaying your loan, contact your lender or loan holder immediately. Ask your lender if you qualify for payment relief, such as deferments or forbearances. It is important to continue to make your loan payments until payment relief has been approved. If you do not make your loan payments on time, you risk going into loan default.
The consequences of default are serious. If you default on a student loan:
- YOUR INCOME TAX MAY BE WITHHELD
- YOU CAN BE SUED FOR THE ENTIRE AMOUNT OF THE LOAN
- YOUR CREDIT RATING WILL BE DAMAGED
- YOU WILL BE INELIGIBLE FOR DEFERMENTS AND FORBEARANCE
- YOU WILL BE INELIGIBLE FOR FEDERAL FINANCIAL AID
- YOUR WAGES MAY BE GARNISHED
- YOU WILL BE LIABLE FOR COLLECTION COSTS
The Department of Education Federal Student Aid website provides guidance to borrowers whose student loan(s) is in default. If you default, you should contact your guaranty agency immediately. Options to get out of default include loan repayment in full, loan consolidation, loan rehabilitation, or loan cancellation/loan discharge.
For more information on repayment, check out the publication, Your Federal Student Loans . For more information on your student loans, go to the National Student Loan Data System website.
The Cleveland State ACCESS Center offers Career Counseling and Job Search Services.
Should you have any questions regarding loan repayment or debt management, contact the Financial Aid Office.
The Tennessee Student Assistance Corporation (TSAC) provides information on loan forgiveness programs |
